Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact Information:
Cedar Shopping Centers, Inc.
Leo S. Ullman, Chairman, CEO and President
(516) 944-4525
lsu@cedarshoppingcenters.com
CEDAR SHOPPING CENTERS ANNOUNCES FOURTH QUARTER AND
FULL YEAR 2007 RESULTS
Port Washington, New York — February 27, 2008 — Cedar Shopping Centers, Inc. (NYSE: CDR) today
reported its financial results for the quarter and year ended December 31, 2007.
Highlights
| • |
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Net income applicable to common shareholders for the quarter ended December 31, 2007
increased 41% to $3.6 million ($0.08 per share) from $2.5 million ($0.07 per share) for the
fourth quarter of 2006. |
| • |
|
Net income applicable to common shareholders for the year ended December 31, 2007 increased
89% to $14.1 million ($0.32 per share) from $7.5 million ($0.23 per share) for the comparable
period of 2006. |
| • |
|
Funds From Operations (“FFO”) increased 33% to $15.6 million ($0.34 per share/OP unit) for
the quarter ended December 31, 2007 compared to $11.7 million ($0.30 per share/OP unit) for
the comparable period in 2006. FFO increased 34% to $56.2 million ($1.22 per share/OP unit)
for the year ended December 31, 2007, compared to $42.0 million ($1.21 per share/OP unit) for
the comparable period of 2006. |
| • |
|
Net cash flows provided by operating activities increased 28% to $51.5 million for the year
ended December 31, 2007 compared to $40.3 million for 2006. |
| • |
|
Total assets increased 27% to $1.59 billion as of December 31, 2007 from $1.25 billion as
of December 31, 2006. |
| • |
|
Occupancy for the Company’s stabilized portfolio at December 31, 2007 was approximately
96%, while total portfolio occupancy, including development and redevelopment properties, was
approximately 92%. |
| • |
|
Lease renewals reflected an average increase in base rents of 8.9% in the fourth quarter of
2007 and 7.6% for the full year 2007; same property NOI increased by 4.0% in the fourth
quarter and 3.4% for the full year as compared to the same periods in 2006, including the
lease termination described below. |
Leo Ullman, Cedar’s CEO, stated, “Our fourth quarter and full year 2007 results indicate that we
continue effectively to execute our business plan. It is also important to note that, while we
have shown strong growth in most every metric for the quarter and year, we have been nevertheless
very conservative in our approach to our portfolio, to our development and redevelopment properties
and to our finances. Accordingly, whether it is our occupancy levels, our strong supermarket
operators with long-term leases, our minimal exposure to fashion, luxury, home furnishings and
similar potentially challenged tenancies, our acquisition of development sites only when we have
anchor tenant commitments, our placement of attractive fixed-rate debt or the availability of funds
under our credit facilities, they all evidence our risk-averse, conservative approach to our
business. In the current uncertain market environment, we will, as always, pursue a disciplined
approach to, and focus on, adding to shareholder value.”
Financial and Operating Results
Total revenues for the quarter ended December 31, 2007 increased 27% to $43.0 million from $33.9
million for the fourth quarter ended December 31, 2006. Net income applicable to common
shareholders increased 41% to $3.6 million, or $0.08 per share, as compared to $2.5 million, or
$0.07 per share, for the quarter ended December 31, 2006. Revenues, net income and FFO for the
fourth quarter of 2007 include $1.1 million, or $0.02 per share/OP Unit, relating to a lease
termination. The Company expects to re-lease the vacated premises to a new tenant on more
favorable terms.
FFO increased 33% to $15.6 million, or $0.34 per share/OP unit for the quarter ended December 31,
2007, as compared to $11.7 million, or $0.30 per share/OP unit for the quarter ended December 31,
2006. Net income and FFO for the fourth quarter of this year reflect minimal negative impact from
the contribution of the nine properties to a joint venture with Homburg Invest that the Company
closed late in the quarter, and reflect the inclusion of the above-mentioned income from the lease
termination. A reconciliation of net income applicable to common shareholders to FFO is contained
in the table accompanying this release.
Net cash flows provided by operating activities increased 28% to $51.5 million for the year ended
December 31, 2007 as compared to $40.3 million for the corresponding period of 2006.
Total revenues for the year ended December 31, 2007 increased 22% to $152.9 million from $125.0
million for the year ended December 31, 2006. Net income applicable to common shareholders
increased 89% to $14.1 million, or $0.32 per share, as compared to $7.5 million, or $0.23 per
share, for the year ended December 31, 2006. FFO increased 34% to $56.2 million, or $1.22 per
share/OP unit, as compared to $42.0 million, or $1.21 per share/OP unit, for the year ended
December 31, 2006. Net income and FFO for full year 2007 include (i) the previously reported
one-time charge of approximately $1.5 million or $0.03 per common share/OP unit for the retirement
of the Company’s former Chief Financial Officer and for the hiring of a new CFO, and (ii) the
above-described credit of $1.1 million, or $0.02 per share/OP unit from the lease termination.
2
Same Property Results
The Company owned 92 properties throughout both the fourth quarters of 2007 and 2006, excluding one
property (in Michigan), classified as held for sale. Same property net operating income increased
4.0% to $26.3 million in the fourth quarter of 2007 as compared to $25.3 million in the comparable
period of the prior year. The improvement in same property results reflects increases in base
rents and expense recoveries, the lease termination described above, and a reduced allowance for
doubtful accounts, offset by slightly higher real estate and other property-related taxes.
Balance Sheet and Capital Position
Total assets increased 27% to $1.59 billion at December 31, 2007 from $1.25 billion at December 31,
2006. The Company had total debt outstanding of $851.5 million at December 31, 2007 as compared to
$823.9 million at September 30, 2007 and had $108.8 million available under its secured revolving
credit facility. At December 31, 2007, the Company’s fixed rate debt was approximately 77% of its
total indebtedness.
The Company has a development portfolio of between $300 and $400 million that it expects to begin
to put into service over the next 18 to 24 months. It expects to fund these activities with
borrowings under its existing revolving credit facility, its recently committed secured revolving
line of credit for construction/development projects (see below), borrowings under
property-specific construction financing arrangements, excess proceeds from refinancing of certain
fixed-rate loans as they come due, and sales proceeds and/or funds from joint venture arrangements.
The Company in February 2008 obtained a commitment in principle for a $150 million master revolving
construction facility with a major bank, subject to normal documentation and lender due diligence
conditions. The Company expects to use this facility to fund a significant amount of its
development activities in 2008 and subsequent years. On January 2, 2008, as previously reported,
the Company completed the refinancing of an $8.9 million
mortgage loan at 7.39% due in April 2008
on a center in Lancaster, Pennsylvania, with a $21.5 million
10-year fixed-rate first mortgage at 5.95%, and
used the excess funds to reduce the outstanding balance on its secured revolving credit facility.
On January 30, 2008, the Company completed a refinancing of the L.A. Fitness facility property in
Fort Washington, Pennsylvania, with a five-year loan in the amount of $6.0 million at 175 basis
points over 30-day LIBOR (replacing $4.8 million at 275 basis points over 30-day LIBOR); the
Company entered into an interest rate “swap” on February 5, 2008, fixing the rate at 5.40%.
Larry Kreider, Cedar’s Chief Financial Officer, noted, “The new construction commitment which we
have arranged, coupled with the refinancing activity we have completed to date, as well as other
existing resources we have on-hand, provide the capital to execute our development and
redevelopment plans. We believe our financial strength and prudent approach along with the
financial strength of our tenants, place the Company in a strong position in the current economic
environment.”
3
Leasing Activity
In the fourth quarter of 2007, the Company signed 32 renewal leases aggregating approximately
106,000 sq. ft. with an average increase in base rents of 8.9%, and 7 new leases aggregating
approximately 20,000 sq. ft. with an average base rent of $12.49 per sq. ft. For the year ended
December 31, 2007, the Company signed 141 renewal leases aggregating approximately 505,000 sq. ft.
with an average increase in base rents of 7.6%, and signed 50 new leases aggregating approximately
170,000 sq. ft. with an average base rent of $16.46 per sq. ft.
Fourth Quarter Acquisitions
On
October 5, 2007, the Company closed on the purchase of the sixth WP Realty property, a 168,000
sq. ft. shopping center located in New Bedford, Massachusetts. The purchase price for the property
was approximately $12.1 million, including closing costs, which the Company financed by (1)
assuming an approximate $8.1 million existing first mortgage loan bearing interest at 6.0% per
annum and maturing in 2014, and (2) funding approximately $4.0 million from its secured revolving
credit facility.
On November 6, 2007, the Company acquired the Price Chopper Plaza shopping center in Webster,
Massachusetts, an approximate 102,000 sq. ft. supermarket-anchored shopping center, for a purchase
price of approximately $17.8 million, including closing costs. The acquisition cost was funded from
the Company’s secured revolving credit facility.
On December 3, 2007, the Company acquired two shopping center properties, located in Bridgeton, New
Jersey and Gardner, Massachusetts, having a total of approximately 314,000 sq. ft. of GLA. The
combined purchase price for the two properties was approximately $32.0 million, including closing
costs, which the Company financed by (1) assuming approximately $14.6 million of existing first
mortgage loans bearing interest at an average rate of 5.9% per annum and maturing in 2012 and 2014,
and (2) funding the balance from its secured revolving credit facility.
On December 20, 2007, the Company acquired two convenience centers, located in Canton, Ohio and
Enon, Ohio, having a total of approximately 77,000 sq. ft. of GLA. The combined purchase price for
the two properties was approximately $8.5 million, including closing costs, which the Company
funded from its secured revolving credit facility.
Joint Venture Activities
As previously announced, on December 6, 2007, the Company closed on the contribution of nine
supermarket-anchored shopping centers to joint venture entities owned 20% by Cedar and 80% by
Homburg Invest Inc., an international real estate company listed on the Toronto and Euronext
(Amsterdam) Stock Exchanges. The nine properties were valued in the aggregate at $169.5 million,
representing an approximate 7% cap rate on a cash (non-GAAP) basis, subject to approximately $106.0
million of first mortgage financing. The 80% interests were acquired for $53.2 million including
closing costs and preliminary adjustments and paid to Cedar in cash.
4
Financial Guidance
The Company reiterated that for the full year 2008 it expects to report FFO of $1.22 to $1.26 per
share/OP Unit. The Company’s guidance excludes any impact on FFO from new or future development /
redevelopment activities, any new acquisitions, dispositions, or from
new joint venture arrangements of
existing properties. The
guidance anticipates throughout 2008 continuing stability in its tenant base, same store revenue
growth of 1.4%, no significant change in the number of shares of common stock outstanding, an
average 30-day LIBOR rate of 5.4%, and a net charge to FFO of $0.05 per share/OP Unit from the
Homburg Invest Inc. joint venture.
Supplemental Information Package
The Company has issued “Supplemental Financial Information” for the period ended December 31, 2007,
and has filed such information today as an exhibit to Form 8-K, which will also be available on the
Company’s website at www.cedarshoppingcenters.com.
Reference to Form 10-K
Interested parties are urged to review the Form 10-K to be filed with the Securities and Exchange
Commission for the year ended December 31, 2007, when available, for further details.
Investor Conference Call
The Company will host a conference call on Thursday, February 28, 2008, at 10:00 AM (EST) to
discuss the third quarter results. The U.S. dial-in number to call for this teleconference is (888)
221-3881. The international dial-in number is (913) 312-0688. A replay of the conference call will
be available from 1:00 PM (EST) on February 28 through midnight (EST) on March 13, 2008 by using
U.S. dial-in number (888) 203-1112 and entering the passcode 6382247 (international callers may use
dial-in number (719) 457-0820 and use the same passcode indicated for U.S. callers). The webcast of
the conference call will be available on the Company’s website at www.cedarshoppingcenters.com and
will remain on the website for a limited time.
About Cedar Shopping Centers
Cedar Shopping Centers, Inc. is a fully-integrated real estate investment trust which focuses
primarily on ownership, operation, development and redevelopment of supermarket-anchored shopping
centers in nine Mid-Atlantic and New England states. The Company has realized significant growth
in assets and has completed a number of developments and redevelopments of retail properties since
its public offering in October 2003. The Company presently owns and operates 119 properties
aggregating 12.1 million square feet of gross leasable area. The Company also owns a substantial
pipeline of development properties as well as approximately 213 acres in primarily unimproved
development parcels.
5
Forward-Looking Statements
Statements made or incorporated by reference in this press release include certain “forward-looking
statements”. Such forward-looking statements include, without limitation, statements containing the
words “anticipates”, “believes”, “expects”, “intends”, “future”, and words of similar import which
express the Company’s beliefs, expectations or intentions regarding future performance or future
events or trends. While forward-looking statements reflect good faith beliefs, expectations or
intentions, they are not guarantees of future performance and involve known and unknown risks,
uncertainties and other factors, which may cause actual results, performance or achievements to
differ materially from anticipated future results, performance or achievements expressed or implied
by such forward-looking statements as a result of factors outside of the Company’s control. Certain
factors that might cause such differences include, but are not limited to, the following: real
estate investment considerations, such as the effect of economic and other conditions in general
and in the Company’s market areas in particular; the financial viability of the Company’s tenants;
the continuing availability of suitable acquisitions, and development and redevelopment
opportunities, on favorable terms; the availability of equity and debt capital (including the
availability of construction financing) in the public and private markets; changes in interest
rates; the fact that returns from development, redevelopment and acquisition activities may not be
at expected levels or at expected times; inherent risks in ongoing development and redevelopment
projects including, but not limited to, cost overruns resulting from weather delays, changes in the
nature and scope of development and redevelopment efforts, changes in governmental regulations
related thereto, and market factors involved in the pricing of material and labor; the need to
renew leases or re-let space upon the expiration of current leases; and the financial flexibility
to repay or refinance debt obligations when due.
6
Non-GAAP Financial Measures — FFO
Funds From Operations (“FFO”) is a widely-recognized non-GAAP financial measure for REITs that the
Company believes, when considered with financial statements determined in accordance with GAAP, is
useful to investors in understanding financial performance and providing a relevant basis for
comparison among REITs. In addition, FFO is useful to investors as it captures features particular
to real estate performance by recognizing that real estate generally appreciates over time or
maintains residual value to a much greater extent than do other depreciable assets. Investors
should review FFO, along with GAAP net income, when trying to understand an equity REIT’s operating
performance. The Company presents FFO because the Company considers it an important supplemental
measure of its operating performance and believes that it is frequently used by securities
analysts, investors and other interested parties in the evaluation of REITs. Among other things,
the Company uses FFO or an adjusted FFO-based measure (1) as one of several criteria to determine
performance-based bonuses for members of senior management, (2) in performance comparisons with
other shopping center REITs, and (3) to measure compliance with certain financial covenants under
the terms of the Loan Agreement relating to the Company’s secured revolving credit facility.
The Company computes FFO in accordance with the “White Paper” on FFO published by the National
Association of Real Estate Investment Trusts (“NAREIT”), which defines FFO as net income applicable
to common shareholders (determined in accordance with GAAP), excluding gains or losses from debt
restructurings and sales of properties, plus real estate-related depreciation and amortization, and
after adjustments for partnerships and joint ventures (which are computed to reflect FFO on the
same basis).
FFO does not represent cash generated from operating activities and should not be considered as an
alternative to net income applicable to common shareholders or to cash flow from operating
activities. FFO is not indicative of cash available to fund ongoing cash needs, including the
ability to make cash distributions. Although FFO is a measure used for comparability in assessing
the performance of REITs, as the NAREIT White Paper only provides guidelines for computing FFO, the
computation of FFO may vary from one company to another.
The following table sets forth the Company’s calculations of FFO for the three months and full year
ended December 31, 2007 and 2006:
7
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Three
months
ended December 31, |
|
Year ended December 31, |
| |
|
|
|
|
| |
|
2007 |
|
2006 |
|
2007 |
|
2006 |
| |
|
|
|
|
Net income applicable to common
shareholders |
|
$ |
3,591,000 |
|
|
$ |
2,539,000 |
|
|
$ |
14,092,000 |
|
|
$ |
7,458,000 |
|
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate depreciation and amortization |
|
|
12,173,000 |
|
|
|
9,178,000 |
|
|
|
41,918,000 |
|
|
|
34,741,000 |
|
Limited partners’ interest |
|
|
159,000 |
|
|
|
131,000 |
|
|
|
633,000 |
|
|
|
393,000 |
|
Minority interests in consolidated joint ventures |
|
|
387,000 |
|
|
|
259,000 |
|
|
|
1,415,000 |
|
|
|
1,202,000 |
|
Minority interests’ share of FFO applicable to
consolidated joint ventures |
|
|
(774,000 |
) |
|
|
(396,000 |
) |
|
|
(2,139,000 |
) |
|
|
(1,746,000 |
) |
Equity income of unconsolidated joint ventures |
|
|
(171,000 |
) |
|
|
(110,000 |
) |
|
|
(634,000 |
) |
|
|
(70,000 |
) |
Gain on sale of interest in unconsolidated joint venture |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(141,000 |
) |
FFO from unconsolidated joint ventures |
|
|
204,000 |
|
|
|
122,000 |
|
|
|
905,000 |
|
|
|
117,000 |
|
| |
|
|
|
|
Funds from operations |
|
$ |
15,569,000 |
|
|
$ |
11,723,000 |
|
|
$ |
56,190,000 |
|
|
$ |
41,954,000 |
|
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FFO per common share (assuming conversion
of OP Units): |
|
|
|
|
|
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|
|
|
|
|
|
|
Basic |
|
$ |
0.34 |
|
|
$ |
0.30 |
|
|
$ |
1.22 |
|
|
$ |
1.21 |
|
| |
|
|
|
|
Diluted |
|
$ |
0.34 |
|
|
$ |
0.30 |
|
|
$ |
1.22 |
|
|
$ |
1.21 |
|
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Weighted average number of common shares: |
|
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|
|
|
|
Shares used in determination of basic earnings per share |
|
|
44,234,000 |
|
|
|
36,723,000 |
|
|
|
44,193,000 |
|
|
|
32,926,000 |
|
Additional shares assuming conversion of OP Units (basic) |
|
|
1,989,000 |
|
|
|
1,924,000 |
|
|
|
1,985,000 |
|
|
|
1,737,000 |
|
| |
|
|
|
|
Shares used in determination of basic FFO per share |
|
|
46,223,000 |
|
|
|
38,647,000 |
|
|
|
46,178,000 |
|
|
|
34,663,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in determination of diluted earnings per share |
|
|
44,236,000 |
|
|
|
36,729,000 |
|
|
|
44,197,000 |
|
|
|
33,055,000 |
|
Additional shares assuming conversion of OP Units (diluted) |
|
|
1,989,000 |
|
|
|
1,940,000 |
|
|
|
1,990,000 |
|
|
|
1,747,000 |
|
| |
|
|
|
|
Shares used in determination of diluted FFO per share |
|
|
46,225,000 |
|
|
|
38,669,000 |
|
|
|
46,187,000 |
|
|
|
34,802,000 |
|
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CEDAR SHOPPING CENTERS, INC.
Consolidated Balance Sheets
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December 31, |
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2007 |
|
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2006 |
|
Assets |
|
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|
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Real estate: |
|
|
|
|
|
|
|
|
Land |
|
$ |
313,156,000 |
|
|
$ |
248,108,000 |
|
Buildings and improvements |
|
|
1,272,405,000 |
|
|
|
982,294,000 |
|
|
|
|
|
|
|
|
|
|
|
1,585,561,000 |
|
|
|
1,230,402,000 |
|
|
|
|
|
|
|
|
|
|
Less accumulated depreciation |
|
|
(103,135,000 |
) |
|
|
(64,458,000 |
) |
|
|
|
|
|
|
|
Real estate, net |
|
|
1,482,426,000 |
|
|
|
1,165,944,000 |
|
|
|
|
|
|
|
|
|
|
Property and related assets held for sale, net of
accumulated depreciation |
|
|
12,135,000 |
|
|
|
11,493,000 |
|
Investment in unconsolidated joint venture |
|
|
3,757,000 |
|
|
|
3,644,000 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
20,307,000 |
|
|
|
17,885,000 |
|
Restricted cash |
|
|
17,839,000 |
|
|
|
11,507,000 |
|
Rents and other receivables, net |
|
|
7,640,000 |
|
|
|
4,187,000 |
|
Straight-line rents receivable |
|
|
11,242,000 |
|
|
|
7,870,000 |
|
Other assets |
|
|
9,778,000 |
|
|
|
6,921,000 |
|
Deferred charges, net |
|
|
29,860,000 |
|
|
|
22,268,000 |
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,594,984,000 |
|
|
$ |
1,251,719,000 |
|
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|
Liabilities and shareholders’ equity |
|
|
|
|
|
|
|
|
Mortgage loans payable |
|
$ |
661,074,000 |
|
|
$ |
499,603,000 |
|
Secured revolving credit facility |
|
|
190,440,000 |
|
|
|
68,470,000 |
|
Accounts payable, accrued expenses, and other |
|
|
26,068,000 |
|
|
|
17,435,000 |
|
Unamortized intangible lease liabilities |
|
|
71,157,000 |
|
|
|
53,160,000 |
|
|
|
|
|
|
|
|
Total liabilities |
|
|
948,739,000 |
|
|
|
638,668,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority interests in consolidated joint ventures |
|
|
62,402,000 |
|
|
|
9,132,000 |
|
Limited partners’ interest in Operating Partnership |
|
|
25,689,000 |
|
|
|
25,969,000 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
|
|
|
Preferred stock ($.01 par value, $25.00 per share
liquidation value, 12,500,000 and 5,000,000 shares, respectively,
authorized, 3,550,000 shares issued and outstanding) |
|
|
88,750,000 |
|
|
|
88,750,000 |
|
Common stock ($.06 par value, 150,000,000 and 50,000,000 shares,
respectively, authorized, 44,238,000 and 43,773,000 shares,
respectively, issued and outstanding) |
|
|
2,654,000 |
|
|
|
2,626,000 |
|
Treasury stock (616,000 and 502,000 shares, respectively, at cost) |
|
|
(8,192,000 |
) |
|
|
(6,378,000 |
) |
Additional paid-in capital |
|
|
572,392,000 |
|
|
|
564,637,000 |
|
Cumulative distributions in excess of net income |
|
|
(97,514,000 |
) |
|
|
(71,831,000 |
) |
Accumulated other comprehensive income |
|
|
64,000 |
|
|
|
146,000 |
|
|
|
|
|
|
|
|
Total shareholders’ equity |
|
|
558,154,000 |
|
|
|
577,950,000 |
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
1,594,984,000 |
|
|
$ |
1,251,719,000 |
|
|
|
|
|
|
|
|
CEDAR SHOPPING CENTERS, INC.
Consolidated Statements of Income
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three months ended December 31, |
|
|
Year ended December 31, |
|
| |
|
2007 |
|
|
2006 |
|
|
2007 |
|
|
2006 |
|
| |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rents |
|
$ |
33,772,000 |
|
|
$ |
27,966,000 |
|
|
$ |
122,258,000 |
|
|
$ |
101,826,000 |
|
Expense recoveries |
|
|
8,067,000 |
|
|
|
5,791,000 |
|
|
|
28,889,000 |
|
|
|
22,361,000 |
|
Other |
|
|
1,207,000 |
|
|
|
94,000 |
|
|
|
1,775,000 |
|
|
|
833,000 |
|
| |
|
|
|
|
Total revenues |
|
|
43,046,000 |
|
|
|
33,851,000 |
|
|
|
152,922,000 |
|
|
|
125,020,000 |
|
| |
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating, maintenance and management |
|
|
6,547,000 |
|
|
|
5,593,000 |
|
|
|
24,864,000 |
|
|
|
22,259,000 |
|
Real estate and other property-related taxes |
|
|
4,842,000 |
|
|
|
3,339,000 |
|
|
|
15,770,000 |
|
|
|
12,558,000 |
|
General and administrative |
|
|
1,976,000 |
|
|
|
1,866,000 |
|
|
|
9,041,000 |
|
|
|
6,086,000 |
|
Depreciation and amortization |
|
|
12,354,000 |
|
|
|
9,144,000 |
|
|
|
42,050,000 |
|
|
|
34,572,000 |
|
| |
|
|
|
|
Total expenses |
|
|
25,719,000 |
|
|
|
19,942,000 |
|
|
|
91,725,000 |
|
|
|
75,475,000 |
|
| |
|
|
|
|
Operating income |
|
|
17,327,000 |
|
|
|
13,909,000 |
|
|
|
61,197,000 |
|
|
|
49,545,000 |
|
Non-operating income and expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, including amortization of
deferred financing costs |
|
|
(12,006,000 |
) |
|
|
(9,567,000 |
) |
|
|
(39,529,000 |
) |
|
|
(34,225,000 |
) |
Interest income |
|
|
208,000 |
|
|
|
249,000 |
|
|
|
788,000 |
|
|
|
641,000 |
|
Equity in income of unconsolidated joint ventures |
|
|
171,000 |
|
|
|
110,000 |
|
|
|
634,000 |
|
|
|
70,000 |
|
Gain on sale of interest in unconsolidated joint venture |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
141,000 |
|
| |
|
|
|
|
Total non-operating income and expense |
|
|
(11,627,000 |
) |
|
|
(9,208,000 |
) |
|
|
(38,107,000 |
) |
|
|
(33,373,000 |
) |
| |
|
|
|
|
Income before minority and limited partners’ interests
and discontinued operations |
|
|
5,700,000 |
|
|
|
4,701,000 |
|
|
|
23,090,000 |
|
|
|
16,172,000 |
|
Minority interests in consolidated joint ventures |
|
|
(387,000 |
) |
|
|
(259,000 |
) |
|
|
(1,415,000 |
) |
|
|
(1,202,000 |
) |
Limited partners’ interest in Operating Partnership |
|
|
(143,000 |
) |
|
|
(121,000 |
) |
|
|
(593,000 |
) |
|
|
(355,000 |
) |
| |
|
|
|
|
Income from continuing operations |
|
|
5,170,000 |
|
|
|
4,321,000 |
|
|
|
21,082,000 |
|
|
|
14,615,000 |
|
Discontinued operations, net of limited partners’ interest |
|
|
391,000 |
|
|
|
188,000 |
|
|
|
887,000 |
|
|
|
720,000 |
|
| |
|
|
|
|
Net income |
|
|
5,561,000 |
|
|
|
4,509,000 |
|
|
|
21,969,000 |
|
|
|
15,335,000 |
|
Preferred distribution requirements |
|
|
(1,970,000 |
) |
|
|
(1,970,000 |
) |
|
|
(7,877,000 |
) |
|
|
(7,877,000 |
) |
| |
|
|
|
|
Net income applicable to common shareholders |
|
$ |
3,591,000 |
|
|
$ |
2,539,000 |
|
|
$ |
14,092,000 |
|
|
$ |
7,458,000 |
|
| |
|
|
|
|
Per common share (basic): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of preferred
distribution requirements |
|
$ |
0.07 |
|
|
$ |
0.06 |
|
|
$ |
0.30 |
|
|
$ |
0.21 |
|
Discontinued operations, net of limited partners’ interest |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.02 |
|
| |
|
|
|
|
Net income applicable to common shareholders |
|
$ |
0.08 |
|
|
$ |
0.07 |
|
|
$ |
0.32 |
|
|
$ |
0.23 |
|
| |
|
|
|
|
Per common
share (diluted): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations, net of preferred
distribution requirements |
|
$ |
0.07 |
|
|
$ |
0.06 |
|
|
$ |
0.30 |
|
|
$ |
0.21 |
|
Discontinued operations, net of limited partners’ interest |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.02 |
|
| |
|
|
|
|
Net income applicable to common shareholders |
|
$ |
0.08 |
|
|
$ |
0.07 |
|
|
$ |
0.32 |
|
|
$ |
0.23 |
|
| |
|
|
|
|
Dividends to common shareholders |
|
$ |
9,952,000 |
|
|
$ |
8,013,000 |
|
|
$ |
39,775,000 |
|
|
$ |
29,333,000 |
|
| |
|
|
|
|
Per common share |
|
$ |
0.225 |
|
|
$ |
0.225 |
|
|
$ |
0.90 |
|
|
$ |
0.90 |
|
| |
|
|
|
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
44,234,000 |
|
|
|
36,723,000 |
|
|
|
44,193,000 |
|
|
|
32,926,000 |
|
| |
|
|
|
|
Diluted |
|
|
44,236,000 |
|
|
|
36,729,000 |
|
|
|
44,197,000 |
|
|
|
33,055,000 |
|
| |
|
|
|
|
CEDAR SHOPPING CENTERS, INC.
Consolidated Statements of Cash Flows
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Years ended December 31, |
|
| |
|
2007 |
|
|
2006 |
|
|
2005 |
|
Cash flow from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
21,969,000 |
|
|
$ |
15,335,000 |
|
|
$ |
13,213,000 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash provisions: |
|
|
|
|
|
|
|
|
|
|
|
|
Earnings in excess of distributions of consolidated joint venture
minority interests |
|
|
352,000 |
|
|
|
110,000 |
|
|
|
58,000 |
|
Equity in income of unconsolidated joint ventures |
|
|
(634,000 |
) |
|
|
(70,000 |
) |
|
|
— |
|
Distributions from unconsolidated joint venture |
|
|
529,000 |
|
|
|
44,000 |
|
|
|
— |
|
Gain on sale of interest in unconsolidated joint venture |
|
|
— |
|
|
|
(141,000 |
) |
|
|
— |
|
Limited partners’ interest in Operating Partnership |
|
|
633,000 |
|
|
|
393,000 |
|
|
|
299,000 |
|
Straight-line rents receivable |
|
|
(3,451,000 |
) |
|
|
(3,285,000 |
) |
|
|
(2,318,000 |
) |
Depreciation and amortization |
|
|
42,160,000 |
|
|
|
34,883,000 |
|
|
|
20,606,000 |
|
Amortization of intangible lease liabilities |
|
|
(10,892,000 |
) |
|
|
(10,298,000 |
) |
|
|
(4,129,000 |
) |
Amortization relating to stock-based compensation |
|
|
1,306,000 |
|
|
|
729,000 |
|
|
|
262,000 |
|
Amortization of deferred financing costs |
|
|
1,233,000 |
|
|
|
1,448,000 |
|
|
|
1,071,000 |
|
Increases/decreases in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash at consolidated joint ventures |
|
|
(936,000 |
) |
|
|
520,000 |
|
|
|
(192,000 |
) |
Rents and other receivables, net |
|
|
(2,548,000 |
) |
|
|
(3,000 |
) |
|
|
(2,292,000 |
) |
Other |
|
|
(4,265,000 |
) |
|
|
(2,654,000 |
) |
|
|
(4,110,000 |
) |
Accounts payable and accrued expenses |
|
|
6,048,000 |
|
|
|
3,275,000 |
|
|
|
2,866,000 |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
51,504,000 |
|
|
|
40,286,000 |
|
|
|
25,334,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Expenditures for real estate and improvements |
|
|
(187,497,000 |
) |
|
|
(186,721,000 |
) |
|
|
(322,857,000 |
) |
Investment in unconsolidated joint ventures |
|
|
(8,000 |
) |
|
|
(1,949,000 |
) |
|
|
— |
|
Proceeds from sale of interest in unconsolidated joint venture |
|
|
— |
|
|
|
1,466,000 |
|
|
|
— |
|
Construction escrows and other |
|
|
(4,927,000 |
) |
|
|
(2,901,000 |
) |
|
|
(368,000 |
) |
|
|
|
|
|
|
|
|
|
|
Net cash (used in) investing activities |
|
|
(192,432,000 |
) |
|
|
(190,105,000 |
) |
|
|
(323,225,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Net advances (repayments) from line of credit |
|
|
121,970,000 |
|
|
|
(79,010,000 |
) |
|
|
79,280,000 |
|
Proceeds from sales of preferred and common stock |
|
|
3,910,000 |
|
|
|
207,928,000 |
|
|
|
168,477,000 |
|
Proceeds from mortgage financings |
|
|
34,493,000 |
|
|
|
118,869,000 |
|
|
|
91,350,000 |
|
Mortgage repayments |
|
|
(16,177,000 |
) |
|
|
(47,558,000 |
) |
|
|
(8,896,000 |
) |
Contributions from minority interest partners, net of joint venture cash
at date of formation |
|
|
51,781,000 |
|
|
|
— |
|
|
|
962,000 |
|
Distributions in excess of earnings from consolidated joint venture
minority interests |
|
|
— |
|
|
|
(176,000 |
) |
|
|
(676,000 |
) |
Distributions to limited partners |
|
|
(1,788,000 |
) |
|
|
(1,525,000 |
) |
|
|
(809,000 |
) |
Preferred distribution requirements |
|
|
(7,877,000 |
) |
|
|
(7,877,000 |
) |
|
|
(7,211,000 |
) |
Distributions to common shareholders |
|
|
(39,775,000 |
) |
|
|
(29,333,000 |
) |
|
|
(20,844,000 |
) |
Payment of deferred financing costs |
|
|
(3,187,000 |
) |
|
|
(2,215,000 |
) |
|
|
(3,598,000 |
) |
|
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities |
|
|
143,350,000 |
|
|
|
159,103,000 |
|
|
|
298,035,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase in cash and cash equivalents |
|
|
2,422,000 |
|
|
|
9,284,000 |
|
|
|
144,000 |
|
Cash and cash equivalents at beginning of period |
|
|
17,885,000 |
|
|
|
8,601,000 |
|
|
|
8,457,000 |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
$ |
20,307,000 |
|
|
$ |
17,885,000 |
|
|
$ |
8,601,000 |
|
|
|
|
|
|
|
|
|
|
|
